Bloomberg News

Wynn Resorts Eliminates Founder’s Villa Perk in Pay Overhaul

By Christopher Palmeri
March 20, 2014

Steve Wynn, the founder of Wynn
Resorts Ltd. (WYNN:US), will have to pay for his personal residence out of
his own pocket, according to a company filing.

Wynn, 72, will pay annual rent of $525,000 for his villa at
the company’s namesake property in Las Vegas, an amount that was
determined by a third party appraiser, the company said
yesterday in its annual proxy statement (WYNN:US). His lease was
previously included as part of his compensation.

The changes reflect discussions with shareholders,
according to the filing. Wynn Resorts is modifying its executive
pay so more compensation is tied to the company’s performance.
Wynn’s $4 million base salary will shrink to $2.5 million this
year under a new plan, according to the filing. Investors will
vote on the 2014 compensation plan at the company’s annual
meeting, which will be held May 16 in Macau.

“This is an example of our compensation committee working
very hard to ensure we continue to be current with the best
market practices,” Wynn Resorts said in an e-mailed statement.

Wynn, who serves as chairman and chief executive officer of
the company, received $19.6 million in total compensation last
year, based on Securities and Exchange Commission reporting
rules, a 10 percent increase from 2012.

Under the existing plan, executive compensation (WYNN:US) is tied to
adjusted earnings before interest, taxes, depreciation and
amortization. The 2014 plan adds third-party recognition of the
company’s quality, as well as goals related to the development
of the Wynn Palace, a resort the company is building in Macau,
according to the filing.

Wynn Resorts, based in Las Vegas, fell (WYNN:US) 2.3 percent to
$229.01 yesterday in New York. The stock has advanced 18 percent
this year.

To contact the reporter on this story:
Christopher Palmeri in Los Angeles at
cpalmeri1@bloomberg.net

To contact the editors responsible for this story:
Anthony Palazzo at
apalazzo@bloomberg.net
Rob Golum, Stephen West